Why Communications Authority Suspended Director General Ezra Chiloba

The Communication Authority of Kenya suspended its Director General, Ezra Chiloba, alleging gross misconduct.

The decision, effective as of September 18, 2023, stems from troubling claims of mismanagement of the Staff Mortgage Scheme, with reported financial discrepancies amounting to Ksh662.4 million at CA.

The details of this suspension have been disclosed in a report obtained by Kahawa Tungu, which outlines the grounds for Chiloba’s suspension, highlighting possible disciplinary action due to fundamental breaches of his contractual obligations.

One major concern raised in the report is that Chiloba allegedly failed to provide adequate leadership in overseeing and administering the Staff Mortgage Scheme.

This perceived lapse in responsibility raised concerns over potential financial losses incurred by the Authority and the potential misuse of the scheme’s resources.

Moreover, the report accuses Chiloba of neglecting to exercise due diligence in monitoring transactions between property sellers and buyers.

As a result, he stands accused of approving and granting Ksh28.9 million without proper consideration of the terms of the contracts.

Another grievance raised in the report is the alleged mishandling of the refinancing of mortgages totaling Ksh364 million for staff members who were unable to substantiate property upgrades corresponding to the funds allocated.

Also Read: Communication Authority Suspends Director General Ezra Chiloba

“Disbursement of the loan of Kshs 25,000,000 to KITALE HILMOST LIMITED. A Company Search with the Business Registration Bureau revealed that the seller entity is owned entirely, as the sole shareholder and the sole director, by Ezra Chiloba Simiyu, the Director General who is also the buyer in this case. This is reasonably construed to be demonstrative of an intent to defraud the Authority,” the report reads.

Ezra Chiloba assumed the role of Director-General at the Communication Authority in September 2021, following a series of leadership transitions within the organization.

Prior to his appointment, Mercy Wanjau held the position of DG in an acting capacity, while Francis Wangusi served as the Director-General from 2012 until Wanjau’s interim tenure, overseeing various critical ICT activities and policies during his tenure.

CA appointed Christopher Wambua in an acting capacity as the new Director General.

Aside from Chiloba, several other officials are facing suspension due to allegations of gross misconduct, including Director of HR Juma Kandie, Joseph Kimanga (Acting), Director of Legal Services Mercy Wanjau, Director of Finance Joseph Kimanga, and Director of Internal Audit & Risk Assurance Rosalind Muriithi. Additionally, former employees Daniel Kipngetich Kiprop and Juma Kandie are implicated in matters related to unprocedural property valuation and outstanding obligations.